Moore Sales purchased some equipment for $50,000 by issuing a 6-month Note Payable. How would this transaction be shown on the statement of cash flows?
A)in the non-cash financing and investing activities section
B)in the investing activities section
C)in the operating activities section
D)in the financing activities section

Question

Quizplus · Accepted Answer

This transaction involves a non-cash exchange, as the equipment was purchased by issuing a note payable rather than using cash. Therefore, it would be reported in the non-cash financing and investing activities section of the statement of cash flows.

Moore Sales Purchased Some Equipment for $50,000 by Issuing a 6-Month